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Questions and Answers
What should happen to surplus stores that remain unsold or issued after twelve months?
What should happen to surplus stores that remain unsold or issued after twelve months?
What is the maximum stock allowed for ordinary stores in relation to issues during the year?
What is the maximum stock allowed for ordinary stores in relation to issues during the year?
Which of the following factors is NOT responsible for overstocks of ordinary stores?
Which of the following factors is NOT responsible for overstocks of ordinary stores?
What should be the objective of every Controller of Stores concerning stock levels?
What should be the objective of every Controller of Stores concerning stock levels?
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How should the Surplus stock Section be organized in relation to the disposal of surplus stock?
How should the Surplus stock Section be organized in relation to the disposal of surplus stock?
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What should be included when preparing the copies of the form to be sent to the Controller of Stores?
What should be included when preparing the copies of the form to be sent to the Controller of Stores?
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What actions should be taken by the department concerned after receiving the information from the Controller of Stores?
What actions should be taken by the department concerned after receiving the information from the Controller of Stores?
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What is the role of the Controller of Stores regarding the proposed changes?
What is the role of the Controller of Stores regarding the proposed changes?
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What should the Controller of Stores do if he disagrees with the consuming department regarding proposed change dates?
What should the Controller of Stores do if he disagrees with the consuming department regarding proposed change dates?
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What does the Controller of Stores need to check after submitting the estimates of loss?
What does the Controller of Stores need to check after submitting the estimates of loss?
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What documentation must accompany the two copies of Form S. 2202 sent back to the Controller of Stores?
What documentation must accompany the two copies of Form S. 2202 sent back to the Controller of Stores?
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What decision must the Controller of Stores communicate to the department once he agrees on the change dates?
What decision must the Controller of Stores communicate to the department once he agrees on the change dates?
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What is the primary role of the Survey Committee after inspection?
What is the primary role of the Survey Committee after inspection?
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Who has the authority to reclassify stores as second-hand or scrap for items valued over Rs. 25,000?
Who has the authority to reclassify stores as second-hand or scrap for items valued over Rs. 25,000?
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Which of the following is the maximum amount that a Depot Officer can reclassify an item without Survey Committee approval?
Which of the following is the maximum amount that a Depot Officer can reclassify an item without Survey Committee approval?
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What must a Depot Officer ascertain before classifying an item costing up to Rs. 1,000 as dead surplus?
What must a Depot Officer ascertain before classifying an item costing up to Rs. 1,000 as dead surplus?
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Who nominates the Secretary of the Survey Committee?
Who nominates the Secretary of the Survey Committee?
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What is the frequency of meetings for the Survey Committees?
What is the frequency of meetings for the Survey Committees?
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What procedures must be followed before selling scrap by private treaty?
What procedures must be followed before selling scrap by private treaty?
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Which officer can redelegate the powers given to the Controller of Stores for reclassifying items?
Which officer can redelegate the powers given to the Controller of Stores for reclassifying items?
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What limit applies to the reclassification of stores by the Controller of Stores?
What limit applies to the reclassification of stores by the Controller of Stores?
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What is specifically prohibited before an auction sale of articles in the depot?
What is specifically prohibited before an auction sale of articles in the depot?
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What is the primary criterion for declaring any items of stores as 'surplus' stock?
What is the primary criterion for declaring any items of stores as 'surplus' stock?
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Which classification of surplus includes items anticipated to be used in the near future?
Which classification of surplus includes items anticipated to be used in the near future?
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How long must an item go unissued to be classified as 'dead surplus'?
How long must an item go unissued to be classified as 'dead surplus'?
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What is the role of a Survey Committee in determining the status of stores?
What is the role of a Survey Committee in determining the status of stores?
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Which of the following items would NOT be classified as surplus?
Which of the following items would NOT be classified as surplus?
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What distinguishes 'movable surplus' from 'dead surplus'?
What distinguishes 'movable surplus' from 'dead surplus'?
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Which of the following statements is true regarding emergency stores?
Which of the following statements is true regarding emergency stores?
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What is necessary for an item to qualify as 'dead surplus'?
What is necessary for an item to qualify as 'dead surplus'?
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Which category of surplus includes items that have been issued for less than two years?
Which category of surplus includes items that have been issued for less than two years?
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What is the primary purpose of the Survey Committee's report regarding surplus stocks?
What is the primary purpose of the Survey Committee's report regarding surplus stocks?
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Which document outlines the procedure for recording the findings of the Survey Committee?
Which document outlines the procedure for recording the findings of the Survey Committee?
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Who is responsible for submitting the Survey Committee's report?
Who is responsible for submitting the Survey Committee's report?
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What aspect of the surplus stocks does the survey committee NOT document?
What aspect of the surplus stocks does the survey committee NOT document?
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What is required from members of the Survey Committee regarding the report?
What is required from members of the Survey Committee regarding the report?
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Who is responsible for communicating the orders of the General Manager regarding surplus stocks?
Who is responsible for communicating the orders of the General Manager regarding surplus stocks?
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In the context of the survey report, what needs to be done after the recommendations are made?
In the context of the survey report, what needs to be done after the recommendations are made?
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What does each item in the survey report require after it has been evaluated?
What does each item in the survey report require after it has been evaluated?
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What role does the Controller of Stores play in relation to the Survey Committee's report?
What role does the Controller of Stores play in relation to the Survey Committee's report?
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Which of the following must be included in the survey report for each item?
Which of the following must be included in the survey report for each item?
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What should be included in the estimate when justifying the loss related to scrapping old standard materials?
What should be included in the estimate when justifying the loss related to scrapping old standard materials?
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What must happen before the changes in stock management are implemented?
What must happen before the changes in stock management are implemented?
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Which statement accurately reflects the management of surplus stocks?
Which statement accurately reflects the management of surplus stocks?
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What should the Controller of Stores consider when deciding the timing of stock changes?
What should the Controller of Stores consider when deciding the timing of stock changes?
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What does the term 'movable surplus' refer to in stock management?
What does the term 'movable surplus' refer to in stock management?
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What action is required when stocks are exhausted according to stock management policies?
What action is required when stocks are exhausted according to stock management policies?
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In relation to surplus stock management, what is the primary concern regarding old standard materials?
In relation to surplus stock management, what is the primary concern regarding old standard materials?
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What action should the Stores Department take regarding new standards until final orders are received from the consuming department?
What action should the Stores Department take regarding new standards until final orders are received from the consuming department?
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At what point should a financial statement for scrapping spare parts be prepared by the Stores Department?
At what point should a financial statement for scrapping spare parts be prepared by the Stores Department?
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What should be included in the manuscript 'Advice to Write off spares' at the time of replacing or scrapping equipment?
What should be included in the manuscript 'Advice to Write off spares' at the time of replacing or scrapping equipment?
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What is the role of the Stores Department regarding existing spare parts when preparing for replacements?
What is the role of the Stores Department regarding existing spare parts when preparing for replacements?
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Which financial aspect must be addressed when preparing for the replacement of old equipment?
Which financial aspect must be addressed when preparing for the replacement of old equipment?
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What signifies that spare parts may become obsolete during the preparation for replacement?
What signifies that spare parts may become obsolete during the preparation for replacement?
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Which of the following actions should the Stores Department avoid in terms of current articles before receiving final orders?
Which of the following actions should the Stores Department avoid in terms of current articles before receiving final orders?
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When should the Stores Department refer to consuming departments in relation to surplus spares?
When should the Stores Department refer to consuming departments in relation to surplus spares?
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What is the consequence if new standards are stocked before receiving final orders from the consuming department?
What is the consequence if new standards are stocked before receiving final orders from the consuming department?
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What is the main characteristic of movable surplus items?
What is the main characteristic of movable surplus items?
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Which of the following is a requirement for classifying an item as dead surplus?
Which of the following is a requirement for classifying an item as dead surplus?
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What type of items are classified as emergency stores?
What type of items are classified as emergency stores?
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Who has the responsibility to inspect items that may have deteriorated in value or become unserviceable?
Who has the responsibility to inspect items that may have deteriorated in value or become unserviceable?
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What is the threshold period for declaring items as surplus if they have not been issued?
What is the threshold period for declaring items as surplus if they have not been issued?
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What should the Controller of Stores do if the railway is committed to the purchase of materials?
What should the Controller of Stores do if the railway is committed to the purchase of materials?
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Which scenario defines materials as not being surplus according to the Controller of Stores?
Which scenario defines materials as not being surplus according to the Controller of Stores?
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If the divisional officer accepts a loss from changes in design, what must he also obtain?
If the divisional officer accepts a loss from changes in design, what must he also obtain?
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How is surplus stock defined in the context of the Controller of Stores?
How is surplus stock defined in the context of the Controller of Stores?
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What action should the Controller of Stores take regarding arrangements if the railway is not committed to a purchase?
What action should the Controller of Stores take regarding arrangements if the railway is not committed to a purchase?
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What classification of surplus includes materials that are expected to be utilized in the near future?
What classification of surplus includes materials that are expected to be utilized in the near future?
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What is a primary responsibility of the Controller of Stores when handling stock levels?
What is a primary responsibility of the Controller of Stores when handling stock levels?
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Which of the following must be done before selling scrap through private treaty?
Which of the following must be done before selling scrap through private treaty?
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What must accompany the copies of the form returned to the indentor through the divisional officer?
What must accompany the copies of the form returned to the indentor through the divisional officer?
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What is essential for an item to be classified as 'dead surplus'?
What is essential for an item to be classified as 'dead surplus'?
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What should be done with spares if the old plant is transferred for use elsewhere?
What should be done with spares if the old plant is transferred for use elsewhere?
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How should the difference between original book value and scrap value be handled when spares are scrapped?
How should the difference between original book value and scrap value be handled when spares are scrapped?
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What should the Controller of Stores do when new plant orders are placed?
What should the Controller of Stores do when new plant orders are placed?
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What information must be included in the estimate for replacement?
What information must be included in the estimate for replacement?
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What happens to spares when the old plant is scrapped and sent to the auction yard?
What happens to spares when the old plant is scrapped and sent to the auction yard?
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When no further adjustment against the estimate is made after selling spares, what is necessary regarding the selling price?
When no further adjustment against the estimate is made after selling spares, what is necessary regarding the selling price?
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What is the primary responsibility of the Controller of Stores upon receipt of new plant?
What is the primary responsibility of the Controller of Stores upon receipt of new plant?
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What must the Controller of Stores return to the departmental officer after filling in the spares quantity and value?
What must the Controller of Stores return to the departmental officer after filling in the spares quantity and value?
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What should be done with spares if they are deemed surplus but still hold value?
What should be done with spares if they are deemed surplus but still hold value?
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Study Notes
Surplus Stocks Prevention
- Important changes in plant and equipment design, introduction of new standards, and scrapping of old plant contribute to surplus stock accumulation.
- Procedure for keeping the Controller of Stores informed of obsolete stock, minimizing accumulation, and reducing administrative losses.
- Departments proposing changes in design or standards must submit an "Advice of Change in Design/Standard" (Form S. 2202). They must get details of existing old-standard materials.
- Prior to implementing a new standard, obtain details about already existing standard material in stock from the Controller of Stores.
- The stock position of raw materials needed for the manufacturing of new items should also be included.
- The Controller of Stores should inform concerning the change and regulate subsequent purchases.
Change in Design and Standards
- Consuming departments should submit "Advice of Change" (Form S. 2202) to the Controller of Stores, including:
- Current stock quantities
- Quantities ordered
- Total value of the material
- Average monthly consumption (based on previous year's data)
- Other consumers of the material
- Any remarks or relevant additional details.
- The document should contain information about any losses associated with the proposed change.
Surplus Spares from Replacements
- When rolling stock, machinery, or plant replacements are planned, the Stores Department should immediately provide details to the same department about stocks in their possession.
- The Stores Department should compile a list of spare parts in stock for the equipment being replaced
- Determine if any of these spare parts are obsolete or if they can be reused for similar equipment.
- Preparation of a financial statement demonstrating funding needs for disposal and scrapping the material.
Advice to Write-Off Spares
- Rolling stock, plant, or machinery are being replaced, a "Advice to Write-off Spares" (Form S. 2209, manuscript) is prepared in triplicate for the Controller of Stores.
- This form should contain a full description of the item being replaced, the relevant particulars such as P.L No, the quantity in stock including details of the quantity, description, value etc.
- The estimated value of the spares in stock should be included in this form.
- The estimated sanction, date, signature of departmental officer, and depot officer details should be included.
Advice of No Requirement of Stores
- If materials are no longer needed for specific works due to changes in design or other reasons, a "Advice of No Requirement of Stores" Form (S. 2213, Manuscript) must be filled out and sent to the Controller of Stores.
- Include details such as P.L. No., Description of items, value to be filled in by Stores Department and relevant remarks.
Definitions of Surplus Stocks
- Definition of surplus stock involves a minimum period of non-issuance (typically two years).
- Movable surplus: items not issued for 24 months, but expected to be used soon.
- Marked in Price Lists.
- Dead surplus: items not issued for 24 months, unlikely to be needed within the next two years.
- Marked in Price Lists after inspection by a Survey Committee.
Emergency Stores
- Items with immediate use are not considered 'surplus' even if they haven't been issued in two years, such as spare parts for equipment that prevent a failure or breakdown.
Surplus Stock Disposal
- Procedures to dispose of surplus stores: Include sale, issue to other railways or transfer to government departments.
- The aim is to regulate and prevent overstocking and maintain effective organizational procedures.
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Description
This quiz covers important procedures for managing surplus stocks in relation to changes in design and standards within manufacturing. It emphasizes the roles of the Controller of Stores and the necessary documentation to minimize accumulation of obsolete stock. Understanding these processes is crucial for maintaining efficient inventory management.
